Warrant of the day: STI (L1GW and L1HW)

The STI remains in a valid short-term uptrend. The index managed to clear resistance at 3,013 on Monday, indicating immediate resumption of the prior rally towards the year-high set in August at 3,043. The market has already approached aforementioned target area with the recent gains. A close above this barrier is needed to signal continuation of the major bull market towards the projected target at 3,130 of the inverted head and shoulders pattern triggered on July 8. Next potential support is located at 3,013, 2,977/2,983 and then 2,949/2,952. A close below the latter area would change the short-term bias from bullish to neutral. A decisive drop below crucial 2,921 and then 2,910 would establish a double top and suggest a mid-term decline towards around 2,780/2,780.